Making More Money The New Fashioned Way

Making More Money The New Fashioned Way

There’s a funny article on The Verge about a pizzeria owner making money by buying his own $24 pizzas from DoorDash for $16. Considering that NYC just passed some laws limiting what third-party delivery services (see: Ordering Food by Phone? Check the Number), this is kind of a strange twist.

One of the most common strategies for tech companies focused on growth is to over-incentivize both consumers and businesses until they have achieved their growth goals. This is extremely costly (and not always a winning strategy), but for companies like DoorDash, there are few choices. Win or die. It’s kind of binary.

The result? A restaurant can order its own pizzas for $16 and get an $8 commission check from DoorDash. Not sustainable, but an interesting way to increase your pizza profits in a time where every pepperoni counts!

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and the CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, writes a weekly column for Adweek, and is a regular commentator on CNN and CNBC and writes a popular daily business blog. He’s the Co-Host of the award-winning podcast Techstream with Shelly Palmer & Seth Everett and he hosts the Shelly Palmer #CryptoWednesday Livestream. Follow @shellypalmer or visit shellypalmer.com.

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